Agricultural Tenancies

 

The laws relating to agricultural tenancies have changed a great deal over the last 15 years or so, and with more agricultural land coming up for sale it is important for landlords and tenants alike to know exactly where they stand.

 

Any tenancy dating back before 1995 will fall within the provisions of the Agricultural Holdings Act 1986, and these tenancies can only be ended in very limited circumstances.  This means that for a landlord to end a tenancy he will have to meet very strict criteria – they can’t just serve a notice to quit on the tenant. One legitimate ground would be if the landlord could show that the land is immediately required for non-agricultural use, eg an agreed sale to a named developer who already has planning permission.

 

A tenancy granted on or after 1^st September 1995 is governed by the Agricultural Tenancies Act 1995 and is commonly known as a Farm Business Tenancy, or FBT.  These are often shorter tenancies for a fixed term which can be ended on the service of a notice to terminate. Take note though, because an FBT which is for more than two years will not end automatically after the end of the term, but will require at least 12 months notice to terminate.  Otherwise the FBT will continue from year to year until terminated by at least 12 months notice. 

 

And remember, like any other lease, an FBT for more than seven years will have to be registered at the Land Registry.  It is therefore essential that any FBT is drawn up by a properly qualified adviser.

 

For further advice please contact Deborah Myerson in our Agricultural Unit tel 01423 543111 or DeborahMyerson@berwin.co.uk